Bandai Namco Holdings Consolidated Financial Report for the Fiscal Year Ended March 31, 2012

Bandai Namco Holdings achieved significant financial expansion during the fiscal year ended March 31, 2012, characterized by a 15.2 percent increase in net sales to ¥454.2 billion and a dramatic surge in net income to ¥19.3 billion. This robust performance was underpinned by the success of the Content business, which saw segment income climb from ¥3.1 billion to ¥17.0 billion, alongside strong contributions from the Toys and Hobby segment. Key drivers included the popularity of character-based merchandise, the commercial success of home video game titles such as Dark Souls, and the rapid growth of social gaming platforms.

Operational efficiency remained a central focus throughout the period, as evidenced by the streamlining of the corporate structure through the reduction of consolidated subsidiaries from 77 to 72. While the Amusement Facility business experienced a slight decline in revenue, it successfully improved profitability, recording a 33.8 percent increase in segment profit. These results reflect the company’s ability to navigate broader market challenges, including shifting consumer demographics and declining birthrates, by leveraging its diverse intellectual property portfolio across global markets.

Looking toward the future, the organization has initiated a three-year mid-term plan aimed at achieving a 10 percent consolidated return on equity by 2015. This strategy prioritizes global expansion, enhanced cross-segment network integration, and rigorous operational efficiency. To align management incentives with these long-term objectives, the company introduced a performance-based stock compensation plan for directors tied to specific operating income targets. By focusing on IP-driven growth and structural optimization, the company aims to solidify its global management foundation and maintain its upward financial trajectory in an increasingly competitive international landscape.